Nvidia (NASDAQ:NVDA) stock was front and center today, as the AI giant dropped earnings that everyone had been waiting for. Heading into the report, expectations were lofty, and for good reason – the company has consistently outpaced estimates and fueled the AI trade for over two years. True to form, Nvidia cleared the bar again, delivering another beat-and-raise performance. Yet, despite the strong showing, the stock slipped 3% in after-hours trading, as some investors looked for even bigger fireworks or focused on lingering geopolitical risks around China.
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Looking at the numbers, revenue came in at $46.74 billion, up 56% year-over-year and $610 million ahead of Street estimates. Non-GAAP EPS landed at $1.05, topping consensus by $0.04. The data center unit – the engine behind the AI boom – contributed a massive $41.1 billion, representing 56% annual growth and a 17% sequential increase, thanks largely to surging demand for Blackwell chips. The company did note that China revenue tied to H20 shipments fell by $4 billion during the quarter, but management highlighted that supply is in place and could hit the market once the regulatory picture clears up. For the October quarter, Nvidia guided to revenue of $54 billion (plus or minus 2%), once again above consensus expectations.
So what do the pros make of it? Wedbush analyst Daniel Ives, who lends his name to the IVES AI Revolution ETF, summed it up in his usual colorful fashion: “Godfather of AI Jensen and NVDA do it again.”
The analyst called this a “very important print” not just for Nvidia, but for the broader tech sector, as it reinforces the narrative that demand for advanced chips continues to outstrip supply. Ives pointed to the long-term potential in China, which he estimates represents a $50 billion market growing 50% annually, even if regulatory hurdles create bumps in the near term.
More broadly, Ives framed Nvidia as the undisputed king of the AI revolution, noting: “There is one chip in the world fueling the AI Revolution and its Nvidia…that narrative is clear from these results and the positive commentary from Jensen.”
The analyst also argues that any pullback in the shares should be viewed as a buying opportunity, with the company on track to hit a $5 trillion market cap by early 2026. With AI infrastructure spending expected to total between $3 trillion and $4 trillion by the end of the decade, Ives described the current environment as one where “the chip landscape remains NVDA’s world with everybody else paying rent.”
Put simply, for bulls like Ives, the story is far from over – Nvidia is still the “only game in town” driving the fourth industrial revolution. (To watch Ives’ track record, click here)
Overall, NVDA currently gets almost total support from the rest of the Street. Barring 3 Holds and 1 Sell, the Strong Buy consensus rating breaks down into Buys only – 36, in fact. With an average price target of $199.94, the upside potential comes in at 10%. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.